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2020-08-31-accounts

Asthma Allergy & Inflammation Research Trust Ltd Financial Statements Year Ended 31 August 2020 Charity registration number. 1129898 Company registration number. 06767479

Contents Page Charity Referen￿ and Administrative Details Trustees. Annual Rep￿￿ (including Dire(knrs' Repcyt) Independent Examinerfs Rewrt Statement of Finanryal Activities (including Inc£*ffE and EXpe￿ilUre Account) Balance Sheet 10 Notes to the Finanual Statements 12-25

Asthma Allergy & Inflammation Research Trust Ltd Year Ended 31 August 2020 Charity Reference and Administrthe Details Charlty reglstration number 1129698 Company registratlon number (fJ767479 Trustees Mr F E Ander50n Professor D Dav MrLASDunn Professor S T Holgate Professor P H Howarth (resigned 25 September 2019) Professor J Lucas Professor G Roberts Dr J Slater-Jefferies Dr M Synek Re9iStered ofllce Mailkx)int 810, Level F Southampton General Hosprtal Tren￿na Road. Southampton S016 6YD Independgnt Examiner T C Bentall FCA Tm Bentall LLP Ar￿dia House Maritsme Walk Ctean Village Southampton S014 3TL Solicitors Paris Smith LLP Number 1 London Road Southampton S015 7AE Investment managers Brewin Dolphin 12 SmithfEld Street London EC1A9LA

Asthma All•ryy & Inllanmation Reseaych Tntst Ltd Year Ended 31 August 2020 The Trustees prewt their retty)ft. and the finar£fjl slalawts of the chty ft)F th2 year ended 31 AJgust 2W20. The Trustees have thpÉea ts provim of the Slatement of Recomrrtnded Pr2ckn (SORP) -Accounling and RepoTty ty Chwilies (FRS Iir2)- ￿ preForry the ann￿1 report and financkl stements ofthe ctsrty. Chais report The AAJR CharFty 18 to Tunds for the worf&McAvned asthma. allefgy and respiratory research department ?t the Unive(sty of Southairpton FacJJty of M￿lL￿ne. The Faculty has experts who have mJe ny importanL breakthrough& from of disea ￿ F￿neerIng treatments and influencing gu￿e￿ne$. During this year, the COVltk19 Pandem￿ has brought unprecedented al￿nge$ for ￿ and has tMghlwJhted the of reseafGh into respkratory diseases. Thus. the end of 2019 saw the 8￿en￿ of a global health crss whtch has Vifiuen￿d the iwes and welbt)eing af peopk WDrfdwide. The severE a(xte respttory syndn)me uJronavinJs 2 {SIR￿0V-2) that ause6 COVIt>19 was f,tst Ayentified sn Ctcernber 2019 ir, WJh￿. Chna and a glot¢l pandemi- announced ty World Health OryanwlÈon Ni March 2020. In the UK this ted to a national lockdown with the Prime MinrAer ordering people to stay at horre Trom March 231a unless their WOTk was esseD.tial. Like ny groups around the world, SouthamptrJn's respiratory doctots. nurses an(1 researchers all continued to wort earing for COVItL19 paltents aTh￿or maknro subslanlial wth.blrttr￿S to global inrttatives ￿ kelp find nthv tsEatnEnts, VXCiTies, tets. wotectsve equiwnent arKi methanistic undetstsndiro of SAR&CoV-2 and its ability to 13use COVIt>19. Wrthln this Bctrvity. the MIR Charty has pkyed a vtial role in providing Trpid Supr￿t to pUmFWi￿ prDJects for COVIEYreJated research. For exarwe, it pumpprirned a project that fc¢used on the host facttys lh filitate &qR&CoV.2 irrfectiw in twticu ACE2 whi¢h ha5 been shown to facilitate the enty of SARSCoV-2 into ce51s. There had been pmiou5 reports ttst produGtion of ACE2 in cfts can be >witched on by ari￿1 txoteins known as 'Interfe￿.. raising concerns ai¥)ut the safety and effitxcy of interferon theRtAes for COV1[￿19. The wc¥k identified a rtDvd variant of ACE2, (8lJed short ACE2, that la£s FTX]St of the SARS-CoV-2 bin(fmg sites: rnakirbJ it unliKety TO fac61ttate VJTUS enty. Importantty. the rewrchers shthved that only stK)rtACEI t•Ut not the SAR&CoW2 bindirtJi fomi of ACE2. is inducible by itrterferons. helping InCr￿e 1X)nfide￿ tn the safety of interferon as a GOV1[￿19 treatm The publF5hed ￿ was cgvered in marty news feats and atso leli to exiemal fEmding from UK Research and Inr￿vatiOn to investigate the fijnctson of shor. ACE2. In artdItK￿ ￿ this projert Ihe Chatty has funded several other Proj￿1$ It￿￿dIng one •"ng the eff of astritrA treatsrErts on anb"bc#Yy responses of peop￿ with seve1 asthma to the SARS£oV2 This 15 iirportant Lcause paltents wth severe asthrrta have IEPOrted ￿nS￿lerable worsening of health and are anxK>us atiout social inter8ct.ons for fear of infection with SARSCoV-2. VaccJ"nation programme5 are being rap¥Jty ￿led out tAJt as yet it is not krjown what patterts" &¥pt￿l￿all1£u￿es afè towards vaccination and rf v￿rneS will Ir￿L￿ gocxl imnpjne responses in thrs patie]rt gryrp. hope that the AAIR-fvndwl PffDiect WIN wide vital informabon to help ￿tients with severe asth￿ ergage ￿r￿enty in the v&cinatFon prD3tsFnme. On behalf of all the TnLSte4 l &e to thank our gener¢￿$ donor5 and benefacto￿ whttse &￿tinLIed support essenliat for supporting new rearch vrto cov1￿19. asthma and other ￿lseaSeS. During 201 20, this support has enabled the AAER Charity to award grants of a(most £1AO.000 lo fund a wide range of new proje¢iS. provide sttjdentship SUPFryi ￿l$a￿S kjt the MSC AIW Couw and equipment glsnts to SUPFQrt studies of asthnH alkrgrf aiKJ olhw lung disease& For infonnation ptease see our websrte." ali--1ar'.i-- orci Chair

Asthma Alleryy & Inflammation Research Trust Ltd Trusteos. Annual Report (including Directorn. Report) Year Ended 31 August 2020 Dlrectors and Tn￿tee8 The directors of the char$tab￿ company are its trustees for the purFoses of charity law. The trustees who served during the year and, unless otheTrYw noted. Sin￿ the year end. are as folkTws'. Mr F E Anderson Professor D Davies MrLASDunn Professor S T Holgate Professor P H Howarth Ires￿Jned 25 September 2019) Professor J Lucas Professor G Roberts Dr J Slater-Jefferie$ Dr M Synek Objectives and activities Objectives The objectNes of the charty are.. The relief of sickness by promtion of research into asthma and asso¢iated allergy and airways diseases. and its diagnosis and treatrnenL princtpalty in the UnNersity of Southampton Fgcutty of Medicine and, by such research, to improve the quality and range of diagnosis and treatment to be offered to patients. and to publish for general as well as medKal consideration the resutts of such research To provide education and training on the diagnosis and treatment of asthrro. allergy and aiws diseases The strategies employed to aCh￿ve the charity's obJ'eLlives are: To present to phami&eutical prc¥Jucers a vehicle whereby they can contribLtte to research in to asthma, allergy and inflammation To facilttate the purchase of major items of equipment necessary for such research To enable researchers within the Unwersty of Southampton Facuty of Medicine to attend seminars aftd conferences throughout the worfd relating to asthma, allergy and inllammation To support the Faculty of Medicine by financtng the research fees for hoklers of spectalist skills as and when appropriate to the objethes ofthe chartty To provide a vehicle to hold and dispense lunds 3110(3ted to investigaiors for work in asthma. allergy and inflammatK)n wrthin the Facuity of Medicine To promote and develop the work and stuty of academics in asthma, allergy and inflammats'on wrthin the Faculty of med￿lne Activities Information about h(￿ the above strategies are applied is gr￿1 in AChIeve￿Ents and Perfomiance {see below). Policios The prinapal poliues of the charty are as follows: G￿nt making To ensure the charity's work delivers rts aims and obJ"ectives. the Scienlific Committee reviews all grant appliCat￿S and makes recommendations for fijnding or rejection to the ftt51 Board of Trustees based on scientific qLÈality and validity, fil to the Chanty objectives and how the proFK)sed work will lead to future extemal funds.

Asthma Alleryy & Inflammation Research Trust Ltd Trustees, Annual Report (including Directors. Report) Year Ended 31 August 2020 Objectlves and activitie5 (continued) Grnnt making (continued) The ¢harity is particularfy keen to supwt earty career researchers to help them to become n￿re established investsgators and this is also reflected in the rxornrrEndats"ons made by the Scntsfic Committee. Each grant award is subject to proviston of an annual revw of progress, whth is assessed by a Mern￿r of the Scienlrfic Committee, and a final report is required. It is a ￿ndrtioft of the award that the applicants ackn¢)wledge the AAIR Charty in any publtcatkin5 or Fwtations to saentif¢ or lay audEnces. Inv8Stment The charity has appointed the professional inveStn￿nI thisers. Breryn Dolph￿. to ff£nage ils investment portfolio on a discretionary basis. In October 2016, the chanty adopted an Investment Poliy that Allows the portfolio to be invested widety Requires diversffjcatson by asset ¢taS5 arml ￿￿nager, so that one half of the total sum invested ¢2rries a very h)w investsnent risk profile (cash or near cash investments denominated irF stertingl and one half of the sum invested carries a rrKxYere invesbnent risk profile. The asset classes can in¢lude cash. bonds. equits. propety. hedge fijnds. structured products, private equity, commodities and any other asset that is deemed suttsbie and ¢$￿s not conflict with the tharity's purF)se Restricts the proportion of investrment in non-stwling assets Requires all investments to tE realisable within three ￿￿nthS Seeks a ￿turn on non-cash bakances of inllalion plus 4% per annum over the long term, after expen The Investment Polw is reviewed annualty. Reserves Of the total assets hekl by the charity, some represent funds that are t)Jmmiited to specffic purposes, or to grants and awards, in the fonn of Restricted Funds arKI De￿gnated Funds (referred to collectively as 'Committed Funds,), the balance being Uncommitted Funds. As the charity is unable to predict the ￿Ve1 of incorTE. particulaty donatsons and legacies, from year lo year, the charty's policy is to retain at least £100,LX)O of Uncommitt&J Funds. this level being reviewed anr¢ualty. The Designated Funds So￿tY reprewt the charFty's commttted exFenditure on grants aw8rded to researchers. The awards are usualty tiM￿[M￿ed. although an extension will be given if there are good reasons for doing so and providing it ￿SU￿$ in the original purpose of tre award teing athieved. Any unused grants are retained ty the charity and, in ¢Jue course. reffw)ved from Designated Funds. Some of the Restricted Funds date back many years and the fvin(khoh*r may have retired or moved away from AAIR-related re5earth. In such cases, the charity's policy is to encourage the fund-holder to release the monies to the chartty to allow further Designated Fund ￿rdS trj other AAIR researchers. The fund-holders aft offered the incentive of having the award named after them. It is the charity's policy not to release unused Restricted Funts to the fvnd-hoiders for purFrf)ses other than those pemiitEed by the charity's charitable objects. Publi¢ benefft statement The trustees have conS￿ered the Charity Commwmin's gURIan￿ on public benefft. including the guidance 'Public benefit running a charity IPB2)'. The charity is commiite(f to prorfing researth that ¢ontributes to the Tel￿f of sickness caused by asthma and associated allergy and airways diseases, and trj prOV￿e education and training on the diagnos¢s and treatment of asthma. al￿rgY and airways diseases. In carrying out their acbvities and making their decisions. the tfustees are mindful of the need to COM￿ with their duty to have regard to the guidance on public benefft.

Asthma Allergy & Inflammation Research TTr￿t Ltd Trustee•, Annual Report (including Dlrectors. Report) Year Ended 31 August 2020 Structure, govemance arKI management Goveming document The chanty is a pnvate company limrted by guatarrtee and is govemed by its Memorandum and Arbcth of Association. dated 3 December 2008. The company was incorporated on 8 Decemter 2008 and registered as a charsty on 18 May 2009. Wrth effect from 1 September 2Crf)9. the company took over the actiVrt￿s, assets and liabilitses of chartty number 803715, which was consti￿ted on 1 May 1990 and registered as a charity on 2 Juty 1990. Appointnwrt of Trustees Trustees are recrurted from arwngst the senKJr n￿MberS of the Univeisity of Southampton Faculty of Medicine. members of the medical professM)n, and rrErnbers of the ger¢eral public who are recommended by the trustees and the professional organisations with whth the charity is assoaated. Trustee Induction and tralnlng Potential trustees are required to complete an applicatKJn fomi and declaration. Subsequently, they are interviewed by a selection of existing trustees and guided through the workn.ngs of the sub-division of the medical faculty krKJwn as Asthma. and Inflammation Researth wthin which the charity main operates. The induction PrO￿5S includes an introduction to the day to day operatK)n and administr"on of the charty. and being provided WFth copies of rts annual report and accx)unts, minutes of recent trustees, meetings and references for Charity commi￿on guidance and infomwtion. Prospective trustees are also invited to attend trustees. meetings to obseNe prcceedings bef(Ke being elected to the board of trustees. Oryanlsadon The board of trustees. which comprises not less than three rrembers (ryth no maximum), oversees the charty, with delegated authority being gNen to two Su￿)mM￿eeS.' Final￿ Commfftee The Finance CoMM￿ee has resFxMsibilÉty for oP￿atiOnal and financial management. An administrator prOV￿eS suppJrt and coordinates financial informthn the Finan￿ Commrttee and the txjard of tTUStees. During the year. the comnvitee comprised three trustees.. Professor Davies (chair), Mr Anderson and Mr Dunn. Scientific coMm￿ee The sry"entI￿ Committee scrulinises all Scienti￿ gRnt and scholarship appltslions, providing recommendations to the trustees on those suitable for ftsnding. During the year. the cDmmittee comprwj the foH(Ming trustees". Professor Lucas, Professor DaY￿S and Dr Synek. Other5 who supported the committee during the year were Dr Emity Swindle (Associate Professor in Phamiacologyl, Dr Mark Jones IAssocie F¥ofessor in Respiraty m9ji￿ne) and Dr Tilman San¢he2- Elsner (Associate Professor in Biomedicine). Rlsk management The trustees evaluate and monitor risk at their mtings arml alw through the woth of their sub-committees. The principal risks are as follows.. Safe-keeping and management of ffK)ney The financial risk. including the approach to risk inherent in the charity's investment portfolio. is evaluated and monrtored by the FIna￿e Committee. wh￿h meets three times each year and reports to the next meeting of tTUStees. One [r￿nber of the Finan(z Committee monitors the financial F¥)Sition at least rrn)nthty. liaising with the ￿lministrator and protssK)nal l)()kkeeper as requi Appropriate scrutiny of grant applicatons The Scientsfic Committee assesses all appl2tions. ensuring that they provKJe appropriate use of the chartty's ￿sOUrceS arKI fulfil the charrty's owbves. and reports to the trustees at their next meeting

Asthma Allergy & Infiammation Research Trust Ltd Truste8s' Annual Report (including Dlrectors. Report) Year Ended 31 August 2020 Achievements and perforniance Work has continued this year in refining the charity's worknng practices and record keeping as well as introdLtcing others where necessary. Attendant WFth the day to day running reqLsirenEnts. the trustees have een particulaty careful not to neglect any of the chanty's generous donors and volunteers. who have continued to SUPF(trrt ts worK and thank them all lor their supporL Legacles have again proved to be a substsntial part of the chanty's donated income and for that the trustees are grateful to the estate5 and relatives of those legators who have been so generous in their thoughts and actions. In most of these ￿SeS the charlty has had no prevH)us contsct wth the legators and its thanks to the families of the deceased can onty be channdkd through a solicrtor, it 15 the trustees, eamesl hope that they reach the intended recipients. The charty's income is such that it is able to o)ntinue its assislar￿ in financing researth in the University of Southampton Facuty of Medicine, CK the allied Wdlcome Trust Clinul Research Facility and Bloff￿dical Research Centre. Most importantty the trustees have been able to conts'nue to supp)rt the alktmportant provision of grants for pumppriming researth projects Irecomrrended maximum £10,000 per award), equipment grants loften leveraging against funds from elsewhere} and PhD research Studentships. During the financial year, charty ￿1ved £25,588 (2019.. £53.5901 in donations and legacies, and incurred expendÈture totalling £141.594 (2019.. £97.8771 in Pursuan￿ of its objectives. Awards were made to researchers in the Universty of Southampton Facuty of Medicine, or the allied Wellcome Trust Clinical Research F&ilty and Biomedul Research Centre. to support new pumFwriming project grants. provide studentship support andlor equipment grants to delNer the obje¢tiYes of the charity. The preseN8tion of the integnty of the rest￿ frjnds hwJh ￿ the d￿nty'S prionty list These restricted funds a￿ held for the exdusNe use of researchets and, in the main, are directty fijnded by corwrate donations and extemal research grants. The restricted funds are regularty reviewed by the trustees. Financial review The chanty achieved an overall deficit for the year (after net gains on investrnents of £53,722 12019: £24,708)) of £55,070 {2019 defictt £10.W2). The principal source of funds during the year was lega¢ies, tr)tslling £21.12512019= £42.429). During the year. the charity continued to desrgnate fund5. wwarding grants of £139.837 (2019.. £253,064). At the end of the year. unrestricled fvnds totalled £571.786 {2019.' £628.1401. Totsl charity fvnds, induding restricted reserves of £48,585 {2019: £47.301), arr￿nted to £620,371 12019.. £675,441) The trustees have been giving fijrther consideration to those indmdual restricted funds that have rernained unused for several years, in an attempt to ensure that the fvnds are used for the PUTposes intended, or othe￿ise released to the chanty for alter￿tiVe appropriate purtrtjses. Details of the chanty's policy for hokling reserves a￿ included in 'obj"￿tiveS and activities, (see page 51.

ASthn￿ Allergy & Inflam￿ Res6aT¢h Tnt Ltd Tn￿tees. Annual Report linduding Dlrectors. Repor4 Year Ended 31 August 2020 Trustees. r8spDnsibli itie5 The trustees (who are al￿ ifrettOTS of AsthrrB & InfAmrrotion Research Tnist Ltd for trte purposes of compary law) are reswnsibte for ppparry the TnJstees' Annual Report and Ihe fiftancial stennis in acccff(kn ith aPpr￿ab￿ W arKI United Kingdom Accounting Stsndards (United ￿ngdOrn Generally ALrept•J knntsng Prac￿}. Company law requwes the trustees to prepare financtal slatÈmerrt5 for each fman¢èl year. wh gNe a and fèir viw ofthe state ofafrairs ￿lhe chaTttabte cwipany and ofthe ir￿0mlng resourcss and appliCat￿n of rescwrces: induding thè in¢>Jrre and expenditure, of the chartial)le ¢0M￿nY forthat perh)J. In weparing these f•MncTral Ihe trustees are required lo". obselve the methcJs and pr in the Ch￿eS SORP 2019 (FRS 102)" make JUd￿￿￿nts and estsr¥tts that are re2sonabEe arHI pnJdent Prepare the finanaa STments on the going ox)n¢em basis unless It is The trustees aTe reswnsibjefor keeping a￿￿￿ate a￿rybng re￿rdS that disclose with reonable aGcJJracy at any tsme the financ¢al p￿tion of the chaystable company and enabje them to ensuTe Ihat the firsancial stat￿Ents wrfh the Act 2W. They are abo reSpOn￿ble for safeguarding the assets ofthe thaT[tab￿ conwany and fDrtaksng reasonable steps forthe prevenlton and deteciiDn of fraud ancl other trregulaTities. The trustees are re$F¥￿sIble frjr tr]e maWtIenaT￿ and integrity of the wrporate and financta5 inforrnabon %rtuuded on the chwitable ¢))mpany's wectsile. LegisJaiion in the Ktngdom goveming tr.e prewation atyj di&$emir￿ oFfinaTh?ai sm￿ts may ifiifertrom legistatyjn in otherjurisdici￿n$. On LEh8Efofthe tK)afd 0fts￿: b￿￿ ProfessA)r D Davies. Trustee Dat8. 2 D •4% 2oLI

Asthma Allergy & Infiammation Research Tntst Ltd Independent Examinerfs Report Year Ended 31 August 2020 Ind¢pend¥nt Exam¥nerfs Report to the Trustee5 of Asthma Allgryy & Inflammation Research Trust Ltd I report to the Gharrty tnjstees on my examination of the accounts of the company for the year ended 31 August 2020 which are set OLrt on pages 10 to 25. Responsibilities and basis of report As the eharity IrL¢slees of the company (and atso tts director5 for the purposes of company law) you are respM)nsible for the p￿paratiOn of the accounts in accordance with the requirements of the Companies Act 20061.the 20(E Acri. Havirbg satisfied myseifthal the accx)unts of the company ar8 not required to be audited under Part 16 of the 20[￿ Act and are eligible for independent examination. I report in respect of my examinalK)n of your charity's accounts as carrsed out undeT section 145 of the Charitie5 Act 2011 I'lhe 207 1 Acl'l. In carrying otjt my examinatton I have follrmed the Directions gwen by the Charity ComMiss￿n under section 145{5)(b) of the 2011 Act Independent examinerfs statèment I have completed my examination. I confim that no matters have come lo my attention in connection with the examination gtving me cause to beI￿ve that in any malerial respect accounting records were not kept in respect of the company a5 required by section 386 of the 2006 Act.. or the a¢¢ounts do not accord wrth those records", or the accounts do not compty wtth the a¢￿u￿ting requirements of section 396 ofthe 2006 Act other than any requirement that the accounts gNe a Mie and faiT which is not a matter considered as part of an independent examinatioft" or the accounts have not been prepared ift accordance wilh metho(ts and principles of the Statement of Recommended Practice for ￿0￿ntIng and reporting by charities lappli¢able lo Charrties preparing their accounts in accordan￿ wtth the Financia Reports"ng Standard applicable in the UK and Republ￿ of Irelaftd IFRS 10211. I havè no concems and have (x)me acFOSS no other matters in ¢xnnectK*n with the examination to whrh attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Timothy C Bentall FCA Tim Benlall LLP Arcadia House Maritime Walk Ocean Villag& Southampton S014 3TL Date.. 20 11 ao21

Asthma Allargy & Inflammation Rèsoarch T￿￿t Ltd Statement of Flnancial Activlties (including Income and Expenditure Account) Y8ar ended 31 August 2020 2020 Total 2019 Total furnts Income from: Donations and legaues Investments 24.172 7.214 1,416 25,588 7.214 53,$90 9,017 Total income 31.386 1.416 32￿02 62.607 Expendiiure on: Charitable activities 141,462 132 141,594 97.87T Total expenditure 141,462 132 141,594 97.8TI Net gains on investrnents 12 53.722 53.722 24,708 Net inc¢)me l (gXWKllturel {56.354) 1.284 (55.070 (10,562) Net movement in funds 15 {56.354) 1,284 (55.070 (10,562) Reconclllatlon of fund5: Total funds brought forward 15 628.140 47.301 675h41 686.003 Totsl funds carried forward 15 571.786 48.585 620.371 675.441 All income and expenditure derive from continuirvJ a¢bvitES. The statement of fina￿la1 activrbes indudes all gains and losses recognised during the year. 10

Balance Sheet AS at 31 August 2D20 2019 Investments 12 517.954 Debtors Cash at b£nk an(J in hand 13 156 121,2110 121.653 71.701 14 19236 102A17 47235 620,371 675,441 620371 675.441 Charlty Fundg Restn&ed ftjnds Unrestrictad furxls 15 15 47￿1 628.140 571,786 Totsl charity funds 620371 6T5,441 Forthe yearending 31 Augu¥i 2J20. Ihe coryHny was to exemptk)n from audit under section 477 of Tne members have nol requ(Bd the company to obtain an al￿11 of tts sktements for the year in questiDn in actorda¥)cewith se¢lion 476 Oftt￿ Cornpani￿ Act 20£￿. The truslee5 and direc10￿ ackn(wledge their responsibitib8s for Corn￿}￿g with the requirernants of the Companies Act 20(E Wilh resFect to accounting T￿￿rdS and the piEp3ration of accounts. The finanaal stakments were apwoved and aUttK￿ fi¥ issue by the BoarcS on 20 ZOZI. Signed on behalfof the tg)ard ofbikn". Mr L A Dunft. Tn￿lee Da￿. Date. The notes on pages 12 tD 25 fi)rni part ofthe5e )knial slatem Compatry ￿9￿atron number. Q6767479

Asthma Allergy & Infiammation Re￿rch Trust Ltd Notes to the Financial Statsments Year ended 31 August 2020 Summary of Slgnllkant accounting pollcles la) General Information and bas18 of preparation 8thma Allergy & Inflammation Research Trust Ltd is a private company limrted by guarantee registered in England and Wales. In the event of the chartty being wound up, the liabilty in respect of Ihe guarantee is limited to £10 per rrember of the ¢haiity. The address of the registered office is given in the charity information on page 2 of these finan￿al stateThEnts. The nature of the chanty's operaltons and pnnopal actNfa'es a￿ descn.bed in the Tn￿tee$, Annual ReporL The charity conslitutes a publ￿ benefft entity as defined by FRS 102. The financial statements have been prepared in accordarsce with Aeeounb"ng and Reporting by Charibes.. Ststement of Recommended Practrce applicable to charibes preparing their accounts in accordance wrth the Financial ReEK)rtt"ng Stsndard applicable in the UK and Republic of Ireland Issued in October 2019, the Financral Reporting Standard applicabte in the Uniled lfjngdom and Republ￿ of Ireland IFRS 102}, the Charits'es Act 2011. the Companies 20[￿ aThl UK Generalty A￿pted Accx)unting Practice. The financFal slatements a￿ prepared on a going ctycem basis under the historical cost convention, modifled to include certain ttem5 at fair value. The finanoal statements are presented in sterfing which is the functional currency of the chanty. The signtficant accounts'ng pot￿leS applied in the preparation of these financial statements are set out below. These policies have consistenty aptA￿d to all years presented unless othe￿iSe stated. (bl Funds Unrestricted funds S￿ avaitable for use at the di%rebon of the trustees in fvrtherance of the general objectives ofthe charity and which have not been designated for other purposes. De$tgnated fijnds comprise unrestritxed funds that have Lwn set aside by the trustees for parb"cular pury)oses. The aim use of e￿ destrjnated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordan￿ with specific restricticms imtM)sed by donors or which have teen raised by the charty for paftiojlar purposes. The cost of raising and administering such fvnds are charged against the specffic fvnd. The wm and use of each restricted fvnd is set out in the notes to the financial statetrnts. (c) Income recognlllon All incoming res¢)urces are included in the Statement of FirAncial Athitses ISoFA} when the charity is legalty entrtled to the incorr after any perfom)ance conditions have been met. the amount can be measured reliably and Ft is Probab￿ that the Inco￿ will be received. Donab'ons". rf there are conditkyts attach￿1 to the donation and it requires a level of perf0M￿n before entidement can be obtsined, income is deferred until those condib.ons are fulty meL or the fulfilment of those condthns is within the o)ntrol of the charity arKI it i% wobable that they will be fvffilled. Donated facilittes and donated professK¢nal seNices are recognised in income at their frair value when their econom￿ benefft is probab￿, they can be measured reliabty and the charity has control over the tem. Fair value is detennined on the basis of the value of the grfl to the charity, for examp￿ the amount the charity would be willing to pay in the open worket for suth facilities and services. A corresF¥)nding anv)unt is recognised in expenditure No amount is induded in the financial stements for general volunteer tirrt. 12

Asthma Allergy & Infiammation Research Tr￿t Ltd Notss to the Financial Statements Year ended 31 August 2020 (¢1 Income re¢ognition (cq>ntinuod) For lega￿es, entitlement is trE earlier ofthe date on whth either. the charity aware that probate has been gr3nted, the estate has ten finalised and the chanty has been r￿tified of an impending distn"bution, or when a distribUt￿)n is r￿￿ed from the estate. Receipt of a acy, in whole or in part, is only considered probable when the ar￿Unt can be measured reliabty and the charity has been notified of the executorfs intention to make a distribution. Vthen legacies have been notified to the charity, or the charity is aware of the grants'ng of probate. and the ¢rrteria for income recognition have not been met. the legacy is treated as a contingent asset and disektsed in the notes to the financial state￿nts. Investment inco￿ is eamed through holding assets for investsrEnt purposes. such as shares, and includes dwKlends and interest. Incorr￿ is included when the amount can be measured reliabty and the charity's right to receNe payrrnt is established. {dl Expendlthre rn¢ognition All expendihjre is accounted for on an accruals basis 8T￿ has been Classrf￿ under headings that aggregate all costs related to the calegory. Expenditure is recojnised where there is a legal or ftstructwe obligab.on to make payments to third parties, rt is probable that the settlement will be required and the amount of the oblvJation can be measured reliabty. It is categorised under the following activity headings.. Expenditu￿ on (thantable activit￿. indudes the costs of making grant awards in fjjrtherance of the charity's key obie¢bves and their asS¢Xia￿ supwrt costs,. and other expendrfure.. represents those Ilen￿ not being 'expenditure on charitable &tivities' or the cost of raisirig fvnds. Irrecoverable VAT i% charged as an expense against the &tivty for which the expenditure arose. Grants payable to third parties are within the charitable obJ"ectives. uncondltional grants are offered. they are acctued as scx)n as the recipient is nob.fied of the grant, as this gtves rise to a reasonable expectation that the reapient will [￿Ne the grants. Where grants are conditional relatsng to perfomiance. the grant is onty accrued when any unfulfilled conditK¢ns are outside of the control of the ¢harity. Conditional grants are treated as designated fvnds. details of whth are shown in note 15. (e) Support ¢osts allocation Support costs are Ih¢Jse that assL8t the work of the charity but do not direcrfy represent charitable actiVit￿s,. they indude office costs, governance costs and administrative costs that are incurred directty in suppK)rt of expenditure on the objects of the charity. Kthere support costs cannot be directly attributed to particular headings they are allrKated to the cost of raising fvnds and expenditure on chantable actNib"es on a basis con￿stent wth use of the resources. The basis on which support costs have been altocated are set out in note 5. If) Inve8knents Listed investments are reccgnised initialty at cos( whth is normalty the transaction price including transaction costs. Subsequenty. they are nEasured at fair value wrth changes recognised in 'net gains I Ilossesl on investrnents, in the SOF Current asset 1nvestw￿nts are short te￿ highty IiquKI investrnents and a￿ held at fair value. These include Cash on depwt and cash equrwalents ¥￿th a rn￿￿ty of less than one year. Ig) Debtors Debtors receivable wthin one year are recogniged * the settlement amount due. Prepayments a valLted at the amount prepaid. 13

Asthma Allergy & Inflammation Research Trust Ltd Notss to tho Flnanclal Statements Year ended 31 August 2020 Ih) C￿h at bank and In hand Cash at bank and in hand includes cash and short terrn. highty liquid, invesknents with a maturity of three months or less from the date of xquisrtion or the opening ofthe depjsit, or simikr, acwunt. li) Creditors and pn)visions Credttors and provisions are reco3nised when the charity has an obligation at the balance sheet date as a result of a past evenL rt is probable that an oufficNI of economic Lwefits will be required in seldement and the amunt can be reliably estimated. Credttors and provisions are nomially recognised at their settlement amunL ti) Financial instruments The charity onty has financial assets and 1kgbilfo.es of a kind that qualrfy as basic financial instruments. Basic financial instruments ￿ inthlty reccpjnised at transaction value artd subsequenty measured * their settlement value. {kl Tax The charity is an exempt charity within the rI￿aDing of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and the￿f0￿ tt meets the definition of a charIlab￿ company for UK ¢orporakn tax purpNJses. 11) Goin9 concern The financial ststemellts have been prepared on a going cOn￿M basis as the trustees believe that no material uncertainkn.es e￿$1. The trustees have c#)nsidered the ￿Ve1 of fijnds hekl and the expected level of income and expendrture for 12 months from authorising these financtal ststenEnts. The budgeted income and expendrture is sufficiert with the level of reseNes for the ¢harity to be able to eonts.nue as a going concern. (m) Jtsdgements and key sources of estimatlon uncertainty Apart from those invofving estimates, no key judgerrents have been made in apptying the at)o¥e accountr'ng policies, which have a s￿nIT￿nt effecl on a￿K)Unts recognised in the financkal staterrents. No key assumptions have been mje con￿mIng the tsjture, and other key sources of ests"matson un￿rtainty, at the reporting date that have a s￿nifiCant risk of causing a material adjustrnent to the carrying amounts of assets and lia￿lIbe$ within the next financÉal year. In¢omo from donatlons and leg•cl8s 2020 2019 Grfts Legacies Donated services 4.113 21.125 350 10,511 42,429 650 25,S88 53,590 Income from donations and legacies was £25.58812019: £53,590) of v#hich £1,41612019.' £985) was attributab￿ to restrthj and £24.17212019: £52.6051 to Unrestric￿ fuThJs. 14

Asthma Alleryy & Inflammation Research Trust Ltd Notss to the Financial Statements Year ended 31 August 2020 Incomo from inveskngnts 2020 2019 Interest on deposits IncorrE from listed investh)ents 81 7.133 7.214 124 8.893 9,017 All incTh from investrrwts in both years was attritMJtable to unrestricted fvnds. Anatysls of expenditure on charitable activils Expenditute in 2020 Grant funding of acti¥￿eS Support costs Total Research and equipment grants payable for the year 110.085 33,857 143.942 Unused grants retur￿1 (2.348) (2,348) 107.737 33.857 141,594 Of the total expendtture of £143,942, £132 was aitributable to ￿$tr￿ed ftjnds and £143,810 to unrestricted funds. Details of suprmxt costs are given in note 5. Expenditu￿ in 2019 Grant funding of actNitses SupFQrt costs Total Research and equipment grants payable for the year 79.910 17.967 97,877 79.910 17,967 97,877 All the above costs were attn.bUtab￿ to un￿tithd funds. Details of support costs are gwen in note 5. 15

Asthma Allergy & Inflammati¢)n Research T￿￿t Ltd Notes to the Financial Statements Year ended 31 August 2020 Allocatlon of support costs AJI support costs are attriLMrtatle to the charity's research and equip￿ent grant fvnding acbvibes. Support costs 2020 Total Goveman¢e (note 61 Finance Informats"on t￿no1(￿jY Office costs Publicty and advertising Investrment manageffent fees (note 7) Professional fees Travel Other 2.580 382 7.211 14.358 1.555 6,108 1,092 108 Total 33,857 Support cth 2019 Total G0Veman￿ (note 6) Finance Information technok Office costs Publicity and advertising Investment management tees {Th)te n Professional fees 2.472 124 6.693 999 6,077 600 198 Total 17.967 Governance costs 21720 2019 Independent examinerfs remunwation 2.580 2.472 1580 2472 16

Asthma Allergy & Infiammation Research Trust Ltd Notes to the Financial Statements Year ended 31 August 2020 Investment management 2020 2019 Investn*nt manage¢s fees and charye5 6,108 6,OT7 6.077 I the above costs in both yeats were attributab￿ to unrestri¢ted funds. Aftatysls of grnnts Grants awards are made by d•'gnabng fvrKls for drawing dtrwn by the recipienL subject to the ongoing approval of trustees, normalty on a staged basis. AffK)unts drawn down are included in expendrture on CharIts￿e activths (note 41.. mvements on the designated funds are shown in note 15. Grant awards made during the year were as folluws: Grants 2020 Grants to w¥JN#Juals Total Researth and equiprrtnt grants awarded 139.837 139.837 Re￿M of unused grants awarded Èn prior year5 (2.348) (2,348) 137.489 137,489 Grants 2019 Grants to indiv¥Juals Total Research arKI equipment gfants awarded 253,W 253.( 253.064 253.C64 Indepgndent examlneVs r•munerallon The independent examinerf5 ￿mUneratIon aFrthnts to an independent examination fee of £1.290 (2019 - £1,236) and other servKes of £1.29) (2019- £1.236). 17

Asthma Allergy & Inflammation R•S￿r¢h Trust Ltd Notes to the Financial Statements Year ended 31 August 2020 10 Stsff costs and gmpbyoe ben•fits There were no empk)yees or staff costs in the current or FXICK year. 11 Trustees. and key management pern￿ne1 romuneration and expenses The trustees neither re￿iVed nor waived any remUneral￿n during the year (2019.. £nil). The charity is managed by rt5 trustees and has no other key ff¢nagement personnel. The reimbursement of trustees, expenses was as folk)ws: 2020 2019 Number of Number Trt￿tees of Trustees 2020 2019 Travel Administrative expenses 24 132 The administratNe expenses in 2020 relate to reimbursement of the ujst of brass plaques incurred by a trustee on behalf of the charrty. No payments were made directy to third parties in erther year. 18

Asthma Allergy & Inflammation Research Trust Ltd Notes to the Financial Slatements Year and￿ 31 August 2020 12 Fixod asset invfjslmonts Listed investrnents Cost or valuation At 1 September 2019 Additions Disposals Revaluats"on At 31 August 2020 628,2¢ 141.652 1305,6261 53,722 517,954 Cafrying anKJunt At 31 August 2020 517.954 At 31 August 2019 628.2C Fixed asset invesbments are measured initialty at cost and subsequenty at fair value ltheir market value) at the reporttng date. lnveStrr￿nts at fair value (￿)priSe.. 2020 2019 Equities 8onds Global investments Absolute retsjm Commodities Propety Other 154.485 122.736 159.753 38.004 30,509 5,284 7,183 129,185 263,686 134.033 71.501 16.148 5.899 7,754 517,954 628,2C6 The fair value of listed investrnents is prowded by Brewin Dolphin and. ordinarity, is deternined by referen￿ to the mKldle market prKe at the cksse of business on the balance sheet date. 13 Debtors 2020 2019 Prepayments and accrued income 156 156 19

Asthma Allergy & Inflammation Research Trust Ltd Notes to the Financial Statements Year ended 31 August 2020 14 Creditorn: amounts falling due within one year 2020 2019 Trade ¢reditor5 A¢¢ruals and deferred incow 10,966 8,270 21,194 3,272 19,236 24,466 A¢cwals and deferred income of £24.466 in 2019 have been red3ssffied as atthie. 15 Fund reconclllatk Unrestricted funds Moven7ents foryearended 31 August 2020 Bala￿e at Nel movement 1.9.2019 in funds Balance at 31.8.2020 Un￿strICted Designated funds: al Research and equIp￿ent grants b) PhD studentships 147.118 61,220 208.338 29 884 292 124 628,140 {&%.354) 571,786 Movements foryearended 31 August 2019 Balan￿ at 1.9.2018 Net movement in fvnds Balance at 31.8.2019 Designated fvnds: al Research and equIpn￿t grants b) PhD sbjdentships 61,081 86.037 87117 147,118 115 122 262 240 639,687 (11,5471 628,140

Asthma Allergy & Inflammalion Research Trust Ltd Notes to the Financial Statements Year ended 31 August 2020 Note 15 {contlnued) unrestric￿ funds: anatysls of movements Movements foryearended 31 August 2020 InD)me Ex￿ndI￿re Transfers Gains I be￿een {lossesl funds Net movement for the year 31.386 (33.857) {137,4891 53,722 {86,238) Designated.. al Research aThJ equipment grants bl PhD studentships (78.617} 137,489 61,220 131.3361 (31,336) 33.734 {143.810) 53,722 (56,354} Movements foryear ended 31 August 2019 Income ExperKliture Transfers between funds Gains I (lo￿$) Net movement for the year Unrestrieted Designated: al Research and eqLriprn￿nt grants bl PhD $tL￿elltshipS 61.622 117.967) (253,064) 24,708 1184,701} {67.910) 153.947 86.037 {12.CNJO) 99,117 87.117 61.622 (97.877) 24.708 {11,547} 21

Asthma Allergy & Inflarnmation Research Tn￿t Ltd Notes to the Financial Ststements Year ended 31 August 2020 Nots 15 (continued Ro8tri¢ted funds Balan Net nK)vement in fvnds Balar￿e Net rr¥)vement in funds Balan at 31.8.2020 31.8.2018 31.8.2019 Ardem-Jones European Asthma Friedmann Gadola Haitchi Hea Holgate Prize Fund Wijayanand Waller Walls 6,977 2.830 6,869 2,826 828 7.107 5(K¢ 6,189 6.977 6.977 2.830 6,869 2,826 3,097 7.107 500 6,189 7,984 4,206 48.585 6.869 2,826 1,813 7.107 500 6,189 7.984 4.2C 47,301 1,284 4.2( 46.316 985 Restrlcted funds: analysls of movements Movements foryearended 31 August 2020 Net movement for the year Expendiiu Haitchi 1.416 1.416 132 {132) 1.284 Movements foryear end8d 31 August 2019 Nel m0Verr￿nt for the year Expendibjre Haitchi 985 985

Asthma Allergy & Inflammation Research Tnmt Ltd Notes to the Financial Staterrnts Year ended 31 August 2020 Nots 15 (contlnuedl Fund descriptions al Unrestrlcted funds All unrestncted fvnds may be treated as designated. bl Dosignated fund8 ReSe8￿h and equipment grants and PhD Studentships The ftFnds were established to 5UPtyJrt the work and study by students and other5 in asthma. allergy and inftammation wrthin the Univer5rty of Southampton Faculty of Med￿lne, or the allied Welknme Trust Clinul Research Fa¢ikty aThJ BKynedical Research Centre. cl Restrlcted funds Restncted fvnds are for the purrx)ses descrited belw. Ardam-Jones To support the work of Dr Mthael Ardern-Jones in dem￿t0￿, particularfy with the Wessex Dennatology Advisory Commritee and the European Scciety for Dem)atologitsl Research. Eun)pean Asthma To promote the European InitiatNe on Aslhma agreed at a European Union meeting in Bnjssels and overseen by Professor Stephen Holgale. Fri8dmann To supwrt the research and teaching of Professor Peter Friedmann in dem￿t010gY and especialty h15 training work in Eth#)pia under the auspi￿ ofthe European Academy of Dermatovenereology. G8dola and Gadola Ultrasound In￿ative To support the work o Professor Stephen Gadoba in ultras(￿nd studies in rheumatobgy. Haitchi To supwrt the work of PrOfes￿r Haitchi in asthma research. Healy To supwrt the work of Professor Eugene Heaty. particuLatty with the Briti'sh kniety br Investigative Dermatoiogy and the European Scrjety of DennatolcwJieal Research Holgate Prize Fund To fvnd a prsze for best rned￿al sbyty woiecl in the Msc Alergy course at UnNersty Hospital Southampton. Ifijayanand To SUPFKJrt the work of Dr Viiayanand on viruses. Waller To support the work of Dr Derek Walkr in allerg￿ disease. Walls To fvnd the Interna￿nal Mast Cell and Basophil Research ￿￿etings, held in Southampton. 23

Asthma Alleryy & Inflammation Research Tn￿t Ltd Notss to the Financial Statements Year ènded 31 August 2020 16 Analysls of net assets bet*wn funds As at 31 August 2020 Total Fixed assets 252,479 236.890 28,585 517,954 Cash and current in¥estnEnts 35.0 66.2￿) 20.000 121.200 Other current assets l (liabilities) {7,817> (10.966} (18.7831 Total 279.662 292,124 48.585 620.371 As at31 Airyust2019 Totsl Fixed assets 347.SY)5 235,CMJO 45.301 628.206 Cash and c#Jrrent Inve$tff￿nts 21,111 48.434 2.000 71.545 Other current assets I (liabilities) (3,116) {21.194) (24.3101 Total 365,900 262.240 47.301 675,441

Asthma Alleryy & Infiammatton Research Tn￿t Ltd Nots8 to the Financial Statements Year ended 31 August 2020 17 Related party trdnsactions Administrative seThices During the year, £12.912 {2019'. £4.780) was payabk to a company in wh￿h the trustee, Mr L A Dunn. has an interest. for administrative servw provKled to the Charity by one of that company's employees. No ￿neffit accrues to Mr Dunn. or the company in which he has an interesL the additional costs to the company (induding sa￿ry and Emptoyer5' National Insurance) being matched by paY￿￿ts made by the charity. At 31 August 2020. £5,6￿(2019.. £800) was accrued in respect of the services provided during the year. Researth grants Applications to the charity for fvnding indude those made, or supported, by Trustees for research into areas, relab.ng lo the charity's obj'ectives, in whth they have specific mediol experttse. Such applicab.ons are scnjtinised by the thanty's Scientific Committee, using the same process that is applied lo all other requests, Wtth the exception thai if the project inVo￿e5 a rrember of that mmittee, the relevant Trustees recuse themselves when a decIs￿n is made about their application in order to avoid a confiK* of interest Tntstees do not benefft dir￿ from the grants awarded. During the year. no grants were awarded for research Fxojects in wh￿h tnjstees had an interest12019.' three grants were awarded. totslling £24.466. in whth knvo trustees had an interest}. The movements for the year are shown bek)w. Tnjstees Balance ￿nth1vre Balance sumame undrawn in the year undrawn at 119/19 af 31W20 Davies Roberts Lucas 17 4.924 19,542 24.483 17 4,924 11,904 7,638 Professot Arshad resigned as a Twstee ￿ 31 December 2018 and has noL therefore, been included in the table above. Movements in the ye8rended 31 August 2019 Tnistees Balance GTrnts Expenditu sumame undrawn 8wanJed in in the year at 1/W18 the year Balance undrawn at 311PA9 Davtes Arshad RO￿rtS Lucas 6.222 2.000 6.205 17 4,924 19,542 24,4e6 4.924 19,542 8,222 6.205 18 Corrtlngent assets- legacy income Al 31 August 2020, the charity had been notif￿ oftwo12019'. three) residuary legacies and one pecLFniary legacy (2019: none), the values of which could not be measured reliably andlor where payments had not been agreed by the executors. At the balan￿ sheet date, the estimated amount receivable was £174,IMI12019.' £174.000). 25